Ashland: An Undervalued Chemical Stock

The market has not yet given Ashland credit for its specialty business, which serves the energy industry and other hot sectors.

Specialty chemical maker Ashland (ticker: ASH) isn't a household name, but its polymers, resins and lubricants can be found across industries and geographies. From shampoo ingredients to compounds that control medication-dissolving rates to gelling agents used in fracking, its products are all around. And the stock deserves a home in your portfolio too.

About a decade ago, Ashland was like any other commodity chemicals manufacturer, with undifferentiated products and low margins. In recent years, however, management has...